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Finance Committee Chairman Michael Okumu said this is an increase from last year’s budget which amounted to Sh14.8 billion/FILE


Nairobi unveils a Sh15b budget

Finance Committee Chairman Michael Okumu said this is an increase from last year’s budget which amounted to Sh14.8 billion/FILE

NAIROBI, Kenya, Jun 28 – The City Council of Nairobi (CCN) has unveiled a Sh15.5 billion budget for the year 2012/2013, the last for local authorities before the devolved system of government is implemented.

Finance Committee Chairman Michael Okumu said this is an increase from last year’s budget which amounted to Sh14.8 billion.

Okumu said the council targets to raise revenue from the Central government, land rates, business permits and parking fees.

“The council will receive Sh4.4 billion from the Central Government with Sh11 billion being generated from other sources. Land rates are expected to raise Sh2.8 billion and business permits and parking fees are projected to bring in Sh0.9 billion and Sh1.4 billion respectively,” he said.

He said other monies will be got from the collection of advertisement fees.

“From billboards and advertisements, the council is budgeting to receive Sh0.9 billion and from the other sources, the council is expected to get Sh3.2 billion,” he observed.

He stressed that City Hall will use the revenue collected prudently to rehabilitate roads, health facilities, environmental management and City planning.

“On recurrent expenses, the council is budgeting to spend Sh11.5 billion and in capital expenses, Sh2.3 billion and in debt resolution, we have budgeted to spend Sh1.7billion,” he outlined.

He further stated that priority will be given to the expansion of education facilities which will receive Sh139 million and that Sh75 million on the completion of projects in the city management and planning.

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Sh1 billion has also been set aside for the rehabilitation of roads, procurement of more specialised equipment as well as improvement of council premises.

He further pointed out that City Hall’s total debts are less than Sh17 billion saying that this amount can be cleared if it collected its debts from defaulters which include the Department of Defense.

“Contrary to the perception that we are insolvent, I wish to inform the general public that as we stand today, the council owes the outside world less than Sh17 billion against what we are owed by the ministry of defence of Sh61billion,” he said.

He said the Kenya Broadcasting Corporation owes Sh260 million while other government institutions were in debt to the tune of Sh15 million.

He stated that other institutions that owed City Hall money included the Kenya Revenue Authority and the Kenya Power Company.

“The Kenya Railways Corporation owes the council Sh412 million and Kenya Power owes us Sh497 million. These are just a few highlights which are an indicator that if we can only get five percent of what we are owed, then we will be able to clear all our debts.”

Elsewhere, the Kisumu Municipal Council unveiled a Sh1.7 billion budget for this financial year, but which was faulted for failing to allocate funds for the reconstruction of its ailing infrastructure.

In the budget presented by the chairman of the Finance Committee Walter Muga, the bulk of the funds will go towards settling the council debts that stand at Sh337 million.

Capital projects have been allocated Sh211 million that will see the council among other projects procure various equipments and motor vehicles.

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A huge chunk of the budget is expected to come from the local authorities transfer fund and rates which will contribute up to Sh429 million and Sh526 million respectively.


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